Advertising is coming back strong.
Companies in the U.S. are expected to spend 15% more on advertising this year than they did in 2020, emboldened by swelling consumer confidence and the pace of Covid-19 vaccinations.
The current rate of ad-spending growth is likely to be the fastest in the postwar era, according to Brian Wieser, president of business intelligence at ad-buying giant GroupM, and comes as many companies had severely cut back on marketing expenses in the early months of the pandemic.
“We are seeing ad surges pretty much across the board as things get back to normal. Some of the categories that were most impacted are starting to pick up again, like travel,” said Dani Benowitz, president of U.S. for Magna Global, an ad-buying arm of Interpublic Group of Cos.
Advertising outlets aren’t benefiting evenly from the ad-spending rebound. Major players in digital advertising—which beyond behemoths like Google and Facebook Inc. include Snap Inc. and Pinterest Inc.—are getting an ever-growing share of the advertising pie.